Archived - Government of Canada Helps to Create Jobs and Growth With Investment in New Venture Capital Fund of Funds

Archived - Government of Canada Helps to Create Jobs and Growth With Investment in New Venture Capital Fund of Funds

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Government invests in third fund of funds to support a vibrant private sector-led venture capital sector in Canada

November 18, 2014 – Ottawa, Ontario – Department of Finance

Finance Minister Joe Oliver today announced the Government of Canada’s investment in Kensington Venture Fund, a private sector-led fund of funds, as the next step in the Government of Canada’s Venture Capital Action Plan (VCAP).

Kensington Venture Fund, the third fund of funds established under the VCAP, had its initial closing with $160 million in commitments—$107 million from institutional, corporate and individual investors, alongside $53 million from the Government of Canada.

Kensington Venture Fund will place an emphasis on investment opportunities in clean technology and energy technology as well as information and communications technologies, and will invest primarily in early-stage and mid-stage venture capital funds and directly in companies across Canada.

Kensington Capital Partners has been selected by lead investors to act as the general partner for the Fund, following a fair and competitive selection process led by the Venture Capital Expert Panel. Investment decisions will be made by Kensington Capital Partners based on market-based principles in order to maximize returns.

The Government of Canada has agreed to make a capital commitment of $1 for every $2 committed by private sector investors to the new Fund, up to a maximum of $100 million. The Fund will seek additional investors to reach its target size and anticipates holding a second closing in 2015.

The initial partners in the Fund are:

BDC Capital Inc. (on behalf of the Government of Canada)

BMO Financial Group

CIBC

OpenText Corporation

Richardson GMP

Royal Bank of Canada

Scotiabank

TD Bank Group

Individual investors

Quick Facts

The Government of Canada’s investment in Kensington Venture Fund is the latest step in the VCAP, a $400-million strategy launched in January 2013 by Prime Minister Stephen Harper to help increase private sector investments in early-stage risk capital, and contribute to a vibrant private sector-led venture capital sector in Canada.

The VCAP includes a commitment to establish up to four private sector-led funds of funds with private sector investors and interested provinces.

The Business Development Bank of Canada is facilitating the implementation of the VCAP on behalf of the Government of Canada by providing independent expertise, undertaking due diligence, supporting negotiations with funds and other investors, and assisting in the deployment of VCAP investments.

Quote

“Canada needs a robust venture capital ecosystem that helps increase private sector investments in start-ups across Canada. We all want the next global leaders – and the jobs that will come with them – to be founded here in Canada. That is why the establishment of the Kensington Venture Fund is so important.”